when you resign from a company?

Question

and the company says your 401k plan is theirs then what?

Answer 1

I have never heard of a company being able to keep your 401K.
Write them a certified letter (make them sign for it) requesting that your 401k account funds be disbursed to you within 14 days or to respond as to why you are not entitled to the funds. In the letter tell them that if the funds or a response are not received within the 14 days that your will file a complaint against them with the Attorney General in your state. If they don't release the funds to you , file the complaint. The Attorney General will contact them and notify them that a complaint has been filed. They will have to respond.

Answer 2

What it sounds like it that they are referring the the non-vested portion of employer contributions. The vesting period and criteria varies by plan, you would need to get a copy of yours from the department or outsourced company that manages the plan (should be on your your last 401 Statement who to contact). Many employers have a 5-7 year vesting period for any employer contributions to your 401K, which means if you leave the company before the funds before that period of time, the vesting period, you forfeit those funds.

You would be entitled to the fair market value of the funds at the time the amount that you contributed to the plan plus and gains on the portion you invested.

The 401K Plan Document will also outlines distributions, rollover and any appeals process along with who to contact within the document.

Answer 3

The 401K that you contribute is yours. The match the company gives can belong to you or belong to the company. It depends on much you are vested with the company. At my company you are fully vested after 6 years of employment. That means if you leave after 6 years, you keep 100% of the 401K match by the company. If you leave early, the company keeps part of it. Whatever money you contribute out of your paycheck is yours. If they take any of it, you can sue.